UPL September-quarter profit rebounds to Rs 452 crore from loss

UPL Limited reported unaudited consolidated profit of Rs 452 crore for the quarter ended September 30, 2026, reversing a Rs 73 crore loss in the June quarter. Revenue from operations rose to Rs 11,860 crore from Rs 10,181 crore sequentially, while segment results increased to Rs 1,793 crore from Rs 1,110 crore. Profit remained below Rs 612 crore a year earlier.

How did UPL's September-quarter profit compare?

UPL's consolidated profit was Rs 452 crore in the September 2026 quarter, versus a Rs 73 crore loss in the June 2026 quarter and Rs 612 crore profit in the September 2025 quarter. The sequential movement was a Rs 525 crore swing into profit, while profit was Rs 160 crore lower year on year. Profit attributable to owners of the parent was Rs 421 crore, compared with Rs 553 crore a year earlier.

Profit before tax was Rs 615 crore, against a Rs 109 crore loss before tax in June and Rs 784 crore in September 2025. Tax expense was Rs 163 crore, compared with a Rs 36 crore tax credit in June and a Rs 172 crore expense a year earlier. Basic earnings per share, not annualised, were Rs 4.99, versus Rs 6.75 in the prior-year quarter.

For the half year ended September 30, 2026, UPL recorded profit of Rs 379 crore, down from Rs 436 crore in the corresponding 2025 period. Half-year revenue from operations nevertheless rose to Rs 22,041 crore from Rs 21,235 crore. The September-quarter recovery therefore did not fully offset the June-quarter loss.

What drove UPL's sequential recovery?

UPL's segment results increased by Rs 683 crore sequentially to Rs 1,793 crore. Crop protection segment result rose to Rs 1,214 crore from Rs 677 crore, Seeds & Post harvest increased to Rs 425 crore from Rs 288 crore, and Non agro rose to Rs 154 crore from Rs 145 crore. Finance costs declined to Rs 819 crore from Rs 852 crore over the same period.

Revenue from operations increased by Rs 1,679 crore from June. Crop protection revenue rose to Rs 9,034 crore from Rs 7,659 crore, Seeds & Post harvest revenue reached Rs 1,858 crore from Rs 1,750 crore, and Non agro revenue rose to Rs 1,060 crore from Rs 848 crore. Inter-segment revenue was Rs 92 crore in September, compared with Rs 76 crore in June.

UPL also recognised Rs 57 crore of other operating income from a settlement for early termination of a job-work manufacturing arrangement during the September quarter. Other income was Rs 186 crore, below Rs 217 crore in June, and included Rs 75 crore from reversal of a provision for value-added tax, or VAT, refund receivables at a subsidiary after closure of earlier-period VAT assessments.

Why was UPL's profit below the prior year?

UPL's September-quarter profit was lower than a year earlier as revenue from operations fell to Rs 11,860 crore from Rs 12,019 crore and finance costs increased to Rs 819 crore from Rs 784 crore. Total income declined to Rs 12,046 crore from Rs 12,269 crore, while total expenses decreased to Rs 11,298 crore from Rs 11,573 crore.

Crop protection, UPL's largest segment, recorded revenue of Rs 9,034 crore, down from Rs 9,736 crore a year earlier, although its segment result rose to Rs 1,214 crore from Rs 1,113 crore. Seeds & Post harvest revenue increased to Rs 1,858 crore from Rs 1,676 crore, while Non agro revenue rose to Rs 1,060 crore from Rs 655 crore. Their segment results increased to Rs 425 crore and Rs 154 crore, respectively.

The prior-year quarter also contained a different exceptional-item outcome. September 2025 included a net exceptional gain of Rs 142 crore, comprising a Rs 240 crore VAT provision reversal partly offset by Rs 98 crore of restructuring cost. September 2026 included Rs 1 crore of restructuring cost, while the share of loss from associates and joint ventures increased to Rs 132 crore from Rs 54 crore.

What do UPL's balance sheet and cash flows show?

UPL's total assets were Rs 1,01,022 crore at September 30, 2026, compared with Rs 95,205 crore at March 31, 2026. Inventories rose to Rs 20,165 crore from Rs 12,676 crore and trade receivables increased to Rs 18,637 crore from Rs 17,874 crore. Cash and cash equivalents fell to Rs 3,268 crore from Rs 5,975 crore.

Total liabilities increased to Rs 59,604 crore from Rs 53,936 crore during the six months. Current borrowings were Rs 21,789 crore, compared with Rs 6,511 crore at March 31, including Rs 9,573 crore of current maturities of long-term debt payable within 12 months. Non-current borrowings declined to Rs 10,926 crore from Rs 15,535 crore.

Net cash used in operating activities was Rs 9,587 crore in the half year ended September 30, 2026, compared with Rs 4,811 crore used a year earlier. The cash flow statement recorded a Rs 7,489 crore inventory increase and a Rs 4,651 crore decrease in trade and other payables. Net proceeds from current borrowings were Rs 10,418 crore, contributing to Rs 8,124 crore of financing cash inflow.

What is next for UPL's proposed reorganisation?

UPL has not given accounting effect to its Composite Scheme of Arrangement in the September 2026 consolidated results because approvals remain pending. The board approved the plan on February 20, 2026 to amalgamate UPL Sustainable Agri Solutions Limited into UPL, demerge the India Crop Protection business into UPL Global Sustainable Agri Solutions Limited, and amalgamate UPL Crop Protection Holdings Limited into UPL Global.

The Competition Commission of India approved the scheme on June 2, 2026, and BSE Limited and National Stock Exchange of India Limited issued observation letters on July 29, 2026. The appointed date for the UPL Sustainable Agri Solutions Limited merger is April 1, 2026. The demerger and the UPL Crop Protection Holdings Limited merger depend on the scheme's Effective Date and still require shareholder, regulatory and National Company Law Tribunal approvals.

UPL also disclosed tax proceedings involving three overseas subsidiaries for assessment years 2014-15 through 2020-21. The subsidiaries have challenged the proceedings, and UPL said legal counsel advised that they have grounds to succeed. The filing did not provide a date for resolution.

Conclusion

UPL returned to quarterly profit in September 2026 as revenue and segment results improved from June, led by crop protection and supported by Seeds & Post harvest and Non agro. However, the Rs 452 crore profit remained below the Rs 612 crore reported a year earlier, when the group also recorded a Rs 142 crore net exceptional gain.

The next disclosed event is the progression of the Composite Scheme of Arrangement through shareholder, regulatory and National Company Law Tribunal approvals. UPL's filing also identifies current debt maturities of Rs 9,573 crore payable within 12 months and unresolved tax proceedings involving three overseas subsidiaries as matters to watch.